The victory of Ethereum over the SEC has drawn the crypto community's attention to this second-largest cryptocurrency by market capitalization. Investors highlight at least three reasons for further growth of ETH.
Here’s what is happening with the coin and the forecasts from crypto industry representatives.
Current Situation of Ethereum
On June 19, 2024, reports emerged that the U.S. Securities and Exchange Commission (SEC) had suspended its investigation into Ethereum. This was reported by representatives of Consensys, the software developer for ETH.
Recall that in the spring of 2024, ETH came under SEC scrutiny due to its transition to the PoS algorithm. From the regulator's perspective, such coins may be illegally issued securities.
Despite these concerns, the SEC approved the launch of spot ETFs based on the cryptocurrency in the U.S. The Consensys team asked the SEC to explain why the regulator gave the "green light" to an instrument that allegedly violates the law. Following this request, the SEC suspended its investigation into Ethereum, though official documents note the possibility of resuming the investigation. Despite this, the news was seen by the crypto community as a major victory, paving the way for other crypto projects.
Ethereum reacted to the SEC's decision with a price increase of over 5% within a day, but then moved into a correction. As of the time of writing, ETH is trading at $3568.
Amid the positive dynamics, the crypto community shared their forecasts.
3 Reasons to Buy Ethereum Now
Many in the crypto community see potential for further growth in ETH's price. Let's look at the three main reasons for such forecasts.
-
The SEC's Capitulation Opens the Path for Growth. Many investors see this as an important victory that will attract new participants to the project.
-
The Launch of Spot Ethereum ETFs Will Increase Demand for the Coin. These instruments are expected to appear on the market in early July 2024. As with Bitcoin, their launch could support the growth of ETH's price.
The logic is that investors will start investing in exchange-traded Ethereum funds, and fund issuers will have to buy ETH, pushing the price up.
-
An ETH Shortage on Exchanges Could Trigger a New Rally. Popular investor QuintenFrancois noted that ETH volumes on exchanges have dropped to an eight-year low. In the context of the launch of spot ETFs on Ethereum, this shortage could provoke a price rally.
These three reasons make Ethereum an attractive investment at the moment.
Comments